Society would be better off with more products that create beneficial externalities.
Answer the following statement true (T) or false (F)
True
You might also like to view...
The money multiplier will be smaller when
A) bank customers prefer to hold a bigger amount of their money as cash (instead of in their checking account). B) when the marginal propensity to save declines. C) when the reserve ratio decreases. D) banks prefer to lend out 9 percent of their excess reserves instead of 90 percent.
A perfectly competitive firm definitely makes an economic profit in the short run if price is
A) equal to marginal cost. B) equal to average total cost. C) greater than average total cost. D) greater than marginal cost. E) greater than average variable cost.
A decrease in the interest rate causes
A) movement up the IS curve. B) movement down the LM curve. C) the IS curve to shift to the left. D) the LM curve to shift to the right.
Classical economists traditionally believed that:
a. there are three motives for demanding money. b. a change in the money supply can affect real GDP. c. the transactions demand for money influences the velocity of money. d. the velocity of money is constant. e. the economy does not always operate at full employment.